RadioShack reported a third quarter profit on Monday against a year-earlier loss, but its sales continued to fall amid intense competition in the electronics sector.
The retailer expects improved fourth-quarter earnings but added conditions would be "challenging."
Quarterly net income came to $46.3 million, or 34 cents a share, compared with a year-earlier loss of $16.3 million, or 12 cents a share.
RadioShack repurchased $162 million of stock in the quarter, reducing its share count.
Sales fell 9.4 percent to $960.3 million, short of analysts' estimates of $988.1 million as tracked by Reuters Estimates. RadioShack's quarterly sales have declined for the past year.
Sales at stores open at least a year, a key measure of retail performance, dropped 8.6 percent.
Gross margin expanded to 51 percent from 46.1 percent a year earlier, aided by improved inventory management.
RadioShack has been closing unprofitable stores and reducing staff since Julian Day, a turnaround veteran, became CEO last year. But weakening sales have raised concern as competition with Best Buy and other chains increase amid a slowing environment for consumer spending.
Selling, general and administrative expenses fell 13 percent as the company kept down costs for payroll and professional fees.